The shiny
steel ring to which you refer is the outer
race for the prop shaft bearing. Normally it is pressed out of the housing using a press and a special tool from the rear (oil seal) side. If you don’t have the special tool you can support the housing on a couple of pieces of
wood and tap the
race out carefully with a brass drift and a hammer. Behind the bearing race there will be one or two shims. The arrow in
photo 3 is pointing to the shims. Save the shims as they have to go back upon reassembly.
Once the bearing race is removed the
oil seals are easy to tap out of the housing, and also easy to tap in the new
seals. Remember that the rear seal spring faces the
water and the front seal spring faces the oil. After replacing the seals put the shims into the housing and press the bearing race back into the housing. Be sure the race goes all the way to the bottom of the recess and presses against the shims.
Replace the two “O” rings on the outside of the housing with new, lubricate the new oil seals with oil or grease and reassemble the whole thing. Put a little silicon or
gasket sealer on the mating surface of the bearing carrier and the leg to keep
water out of there, and don’t forget to grease the splines on the propshaft so it comes apart easy the next time.